The price of Conflux (CFX) saw a huge increase last week and entered the top 100 ranking of cryptocurrencies by market capitalization. The rally for this altcoin is far from over, despite the price gaining more than 300% in the past seven days.
According to CoinGecko data, Conflux is currently ranked 81st in the ranking of cryptocurrencies with the largest market capitalization. Just a week ago, on February 13, its market cap was just $114 million – today it has shot up to $484 million. Meanwhile, CFX trading volume has increased almost 58 times from $8.6 million to $497 million.
What is conflux?
Conflux is a high throughput first layer consensus blockchain. It uses a unique tree-graph consensus algorithm. It enables parallel processing of blocks and transactions to increase throughput and scalability.
Project Is a public, permissionless blockchain. Furthermore, it complies with the regulations of the cryptocurrency sector in China. Conflux provides tools for Asian projects connecting decentralized economies to strengthen the global DeFi ecosystem.
Last week, Conflux signed a deal with China Telecom to bring blockchain SIMs to market. It will dramatically lower the barrier of entry to Web3 for China Telecom’s 390+ million mobile phone customers, while making transactions faster and more secure. The goal is to make mobile phones more secure, by making the personal digital assets of telecom users more secure.
The native token of the project is CFX. It allows token holders to pay transaction fees, earn rewards through staking, rent storage, and participate in network governance. CFX also incentivizes and rewards miners who keep the network running securely.
conflux (CFX) soars 316%
Conflux price surged 316% in the past week. The CFX price opened at $0.054 and closed at $0.226. The upward movement was accompanied by a huge increase in the trading volume, which reached the highest level in the trading history of this altcoin.
The rise broke the resistance area at $0.200, which has acted as both support and resistance in the past (blue circles). Now this sector is expected to act as a support in case of a correction.
However, last week’s gains don’t seem to be ending as Conflux is in the process of forming another bullish candlestick today. At the time of writing, the price of CFX is up 25% to $0.285.
If the upside momentum continues, the next price resistance lies at $0.42 and $0.55. Reaching the latter would mean a further 90% increase.
Despite the overbought RSI at 88, technical indicators from the weekly time frame are yet to signal the end of the upward impulse. Conversely, a bullish retest of the 50 area that appeared two weeks ago on the RSI reinforces the validity of the upward momentum.
Short term recovery potential
There is a possibility of a short term correction on the daily chart of Conflux. CFX price today reached the 4.618 Fibonacci external retracement level at $0.315. Usually, this zone marks the maximum extent of the short-term upward impulse.
Moreover, the daily RSI is in the process of forming a potential bearish divergence. If confirmed, we should expect a correction to at least the above-mentioned long-term support/resistance level at $0.200. If there is a breakdown, the next support could be provided by the 0.618 Fibonacci retracement level at $0.150.
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